[FIRST NAME GOES HERE] Do you need a crystal ball?

published8 months ago
2 min read

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Today's Edition
⚬ Get most out of ESOPs
⚬ How to use this data - ESOPs
2 mins 45 sec 12ms Read Time

Get most out of ESOPs📈

Asking for equity is easier than asking for extra “dhaniya mirchi'' from your sabziwale bhaiya. Don't believe us? Read ahead.

Finally the Indian companies are offering ESOP to retain good talent. Reason? because they have realized that you're not a Maruti 800 🚘, you're a freakin F1 🏎

All you’ve to do is ASK FOR IT.

So, today let us focus on the “right questions” you must ask your employer about ESOP.

Wtf are ESOPs

Getting Employee Stock OPtions means you can buy your company's shares in future, but pay today's price tag. This means at the time of buying (or exercising) you would already know if you'd be making any profits or not.

Just remember, holding onto ESOPs could outdo the stock market and maybe even double your dough. Time is your best buddy here.

Why’re companies offering ESOPs?

Because it’s a win-win deal. If the company does well, the share value automatically goes up. At the same time, it motivates employees to invest fully in the company’s success.

How to get ESOPs while joining a company?

As soon as you hear, “so do you have something to ask” from recruiter, start with these questions:

Do you have an ESOP policy for employees?🤷🏻‍♀️

If yes, then clarify a couples of things:

  • Is it approved by the Board and do you get to have it in writing? Don't fall for a verbal promise.
  • You can also ask for a copy.

What is the valuation of my ESOPs?🤑

  • no. of units you’ll get
  • their current market value or Face value (think of this as stock price)
  • the TDS charged/ tax implication on exercising

What’s the vesting schedule…monthly, quarterly, or annually?🧐

  • Most companies, will start awarding you ESOPs after a year and then frequently every month or quarter. In simple words, you can start buying (or exercising) after a year, and then every month/quarter. Ask them if theirs is any different?

What about the exit clauses?🏃🏻‍♂️

  • If you leave the company for a new job, retire, or get laid off, then you typically have a window of 90 days to exercise your options. Ask them what's their window
Remember, you can also negotiate the units in ESOPs, always ask for more.

Use this handy questionnaire to sneakily own a piece of your dream company while working there. Awesome, right? So, don't just haggle over salary – level up and ask for ESOPs!


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